Tech News & Commentary

'Grand Theft Auto 5' leads critical season for video game biz

The console video game industry has a lot riding on this fall and holiday shopping season. With all three major hardware makers out with new consoles, game publishers have their fingers crossed for a major comeback.

In the U.S., retail sales of new video game hardware and software fell 19% to $443 million in July, marking the 20th straight month of declining sales on a year-over-year basis. Year to date through July, sales are down 15% to $4.55 billion, according to the NPD Group.

Retail sales of new video game products accounted for 38% of total consumer spending on video games in July, NPD says. Digital format sales, including full-game downloads, add-on content, micro-transactions, subscriptions, mobile apps and social network games, totaled $593 million and accounted for 51% of total game sales last month. Used game sales and rentals made up the remaining 11%.

June's E3 video game expo saw thousands of attendees play games such as "Dead or Alive Ultimate" (above), by Team Ninja. View Enlarged Image

Video game players are likely saving up for new consoles from Microsoft (MSFT) and Sony (SNE) — the Xbox One and PlayStation 4, respectively. Nintendo (NTDOY) was first to market with a next-generation console last November with the Wii U.

In a research report Monday, Baird Equity analyst Colin Sebastian said the upcoming slate of video game releases is the strongest in years.

Perhaps the biggest game of the year will be Take-Two Interactive Software's (TTWO) "Grand Theft Auto 5," set for release on Sept. 17. It's the latest in Take-Two's wildly successful crime saga series.

Ubisoft released "Splinter Cell: Blacklist" on Tuesday and has "Assassin's Creed 4" scheduled for availability on Oct. 29.

A recovery in console video game sales would help out GameStop (GME), the nation's top game retailer, Sebastian said. But if video game dollars and time continues to shift to tablets, smartphones and social media, GameStop also is the most exposed.

The console video game industry has a lot riding on this fall and holiday shopping season. With all three major hardware makers out with new consoles, game publishers have their fingers crossed for a major comeback.

In the U.S., retail sales of new video game hardware and software fell 19% to $443 million in July, marking the 20th straight month of declining sales on a year-over-year basis. Year to date through July, sales are down 15% to $4.55 billion, according to the NPD Group.

Retail sales of new video game products accounted for 38% of total consumer spending on video games in July, NPD says. Digital format sales, including full-game downloads, add-on content, micro-transactions, subscriptions, mobile apps and social network games, totaled $593 million and accounted for 51% of total game sales last month. Used game sales and rentals made up the remaining 11%.

June's E3 video game expo saw thousands of attendees play games such as "Dead or Alive Ultimate" (above), by Team Ninja. View Enlarged Image

Video game players are likely saving up for new consoles from Microsoft (MSFT) and Sony (SNE) — the Xbox One and PlayStation 4, respectively. Nintendo (NTDOY) was first to market with a next-generation console last November with the Wii U.

In a research report Monday, Baird Equity analyst Colin Sebastian said the upcoming slate of video game releases is the strongest in years.

Perhaps the biggest game of the year will be Take-Two Interactive Software's (TTWO) "Grand Theft Auto 5," set for release on Sept. 17. It's the latest in Take-Two's wildly successful crime saga series.

Ubisoft released "Splinter Cell: Blacklist" on Tuesday and has "Assassin's Creed 4" scheduled for availability on Oct. 29.

A recovery in console video game sales would help out GameStop (GME), the nation's top game retailer, Sebastian said. But if video game dollars and time continues to shift to tablets, smartphones and social media, GameStop also is the most exposed.

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